A Cooperative Mechanism Design for Environmental Management Based on Game Theory

With the population growth and the social economy development, there is a consensus among scholars and decision makers that tackling global environmental problems and promoting sustainable development requires a joint effort of many players (countries). Game theory has been used widely to study these economical cooperation problems. Most of these contributions focus on showing the efficiency of cooperation. This paper aims to the mechanism design of promoting long run cooperation among players for environmental management in wider situation by means of dynamic programming and game theory. The mechanism of promoting cooperation designed in every stage provides a feasible and fair cost vector for every player, which indicates the possibility and stability of cooperation. This self-incentive process of cooperation provides theoretical basis for cooperative environmental management.